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Governors’ Fuel-Tax Plan Fails in Argentina’s Lower House After Special-Majority Ruling

A disputed interpretation by Chamber president Martín Menem blocked approval as support fractured among provincial allies.

Overview

  • The measure drew 126 votes in favor, 7 against and 5 abstentions after a more than 14-hour session that ended near 3 a.m.
  • Menem required 129 affirmative votes under Article 75(3) of the Constitution, treating the proposal as one needing a special majority.
  • Opposition leaders Germán Martínez and Nicolás Massot rejected that threshold, noting the Senate had not applied it and arguing the bill returned resources to provinces.
  • Five Left Front deputies abstained, the Civic Coalition voted against, and absences by lawmakers tied to governors Osvaldo Jaldo, Alberto Weretilneck and Gustavo Sáenz helped sink the initiative.
  • The proposal would have dissolved several national trust funds and reshaped fuel-tax sharing, including 57.02% for provinces and 28.69% for the social security system.